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    • tjp70
    • By tjp70 29th Mar 11, 2:44 PM
    • 396Posts
    • 2,047Thanks
    Drip drip drip feeding the mortgage
    • #1
    • 29th Mar 11, 2:44 PM
    Drip drip drip feeding the mortgage 29th Mar 11 at 2:44 PM
    Yes, itís another MFW diary.!!
    I have been a sporadic lurker over the last few months and have periods of being inspired and then periods of hopelessness, wondering how I will ever make a dent into our mortgage. So, hereís our story and hoping I donít bore anyone to tears.
    A little about me and Mr tjp70. We are living in our second house and have a DS aged 14 and a DD aged 10, plus a geriatric cat (aged 17). DH has an ok job in the Financial Sector, not very well paid, and I work part-time (more on that later). Our mortgage is a mixture Ė part endowment £20,000 and part repayment £43,582 as at todayís date. DH took out the mortgage on house number 1 before I met him at a time when endowments were the best thing since sliced bread (how wrong they were!!) and over the years we have reduced the endowment part of the mortgage so that we know the endowments will pay off the £20,000. It is staggering to think that when they were taken out, they were supposed to pay off £53,000 and now will only repay £20,000. On the plus side, we did get a very small pay out a few years ago for the mis-selling of the endowments, an amount that was put straight to the mortgage account.
    The mortgage is with Nationwide on their SVR rate of 2.5%. We were previously on a fixed mortgage and when the fix ended, we kept the mortgage payment the same, so that we currently overpay £175.00 per month. However I am finding it hard to over pay much more. The mortgage end date is 31.05.2023.
    So onto my work situation; I work school time hours as much as possible. I have been a part time self-employed bookkeeper for about seven years but in recent times, have found it to be very lonely Ė after all itís just me and the cat at home for 30 hours a week. She isnít a very good conversationalist. So last year (with my 40th looming and possible mid-life crisis threatening) I decided to look around for something else to do. I have always been an animal lover and have set up a dog walking/pet minding business at home. I invested a lot of money and bought a van, had it fitted out, sign written etc. and have been waiting for the business to take off, which it is doing very very slowly. In the meantime, I now do about 5 Ė 10 hours of bookkeeping a week to keep me going. Moneywise we are ticking over, but there is no spare cash for luxuries or to throw at the mortgage. We do have a healthy emergency fund in place. We also have £2000 on 0% credit cards, but have that amount sat in a savings account for when we need to pay it off.
    Mortgage wise, DH is very happy to sit and wait until 2023 for the mortgage to run its course. I however see the £4.35 daily interest that we pay and feel the need to pay off as much as possible, as soon as possible. DH is happy for me to do this as long as it does not affect our family life too much or involve him too much! So long as he gets to play golf once a month and we get to eat out occasionally, then heís a happy man. However, should I happen to mention that we do a car boot sale, then his eyes glaze overÖÖ..!
    So, today is the day to make a proper start and when I do get demoralised, I am hoping that you guys will be there to spur me onÖ..
    Mortgage 10/11/17: £120,995.00
Page 15
    • Luckyinlife
    • By Luckyinlife 28th Jul 15, 11:03 AM
    • 1,598 Posts
    • 6,036 Thanks
    well done smashed it :]
    Mortgage--- £67700 March 15 £65221 April 15 £64983 July 15 £64780 sept 15 Remortgage £67295 oct 15 £66599 Nov 15 £65878.73 Dec 15 £64834 1st Jan 16 Feb 16 £64,511.89 March 16 £64,056.40 April 16 £62550 May 16 £62,396.20 Feb 17 £60.800
    Emergency fund 23k
    • tjp70
    • By tjp70 28th Jul 15, 5:18 PM
    • 396 Posts
    • 2,047 Thanks
    Thank you for all of your messages x
    Mortgage 10/11/17: £120,995.00
    • tjp70
    • By tjp70 12th Jul 17, 7:30 AM
    • 396 Posts
    • 2,047 Thanks
    Life after the mortgage has gone
    It's been two years since we paid off the mortgage. Not having that monthly payment to make has changed my life considerably. Last July, after much deliberation, I stopped working for my parents company. It was a tough decision but the right one; I was so stressed all the time, and whilst I was being paid extremely well, I no longer liked who I was and so, handed my notice in.

    I decided to take the summer off to spend with DD as she was 15 at the time. We had a great summer holiday; we went to Yorkshire together and we spent a week at my parents house in France with the rest of the family. We also went to Cornwall for a week with DS and his girlfriend. September came and DD went back to school and I eventually knuckled down and started job hunting. I was offered a part time role in a local accountants and started there in October. I hated it. I worked in an accountants when DD was a baby and disliked it then, so why I thought I would like it second time around is beyond me. Within three months I found another job, just as close to home, working 3 days a week. I earn at least 50% less than what I was earning working for my parents, but I am so much happier. Paying off our mortgage has enabled me to do this, plus having an incredibly supportive husband.
    • tjp70
    • By tjp70 12th Jul 17, 8:06 AM
    • 396 Posts
    • 2,047 Thanks
    Building the pension pot
    Since starting back at work, we have been saving and have been turning our focus to our financial future. During the years I was self employed I ploughed money into the mortgage instead of a pension. This was a conscious decision as we knew we would focus on our retirement once the mortgage had been despatched. Now we have had the chance to review our pensions, we realise we need to take some action now; our concern being that we have a comfortable lifestyle at the moment, but once DH retires then our monthly income is minimal. We have added a voluntary contribution to his workplace pension of £100/month and will review this at a later date. I now pay £35/week into a pension.

    Our savings are gaining a tiny amount of interest so we have decided to use the savings as a deposit for a (very small) buy to let property in our area. I didn't realise that buy to let mortgages are interest only which goes against all our principles so I have insisted that we have a mortgage that you can overpay. As we are so new to this, we have opted for a two year fixed mortgage. That way we know how much money we have to pay each month. After the two years, we will decide what to do. Obviously if we detest being landlords we could sell, but hopefully not. So, the survey is being carried out on Friday and all being well, things should all go through by the end of September.

    I'm looking forward to starting another mortgage overpayment spreadsheet
    • tjp70
    • By tjp70 19th Nov 17, 4:43 PM
    • 396 Posts
    • 2,047 Thanks
    Finally, after what seems an eternity, the sale has gone through and we completed the BTL purchase on 10th November. We have been very lucky and secured a tenant almost immediately. We are awaiting confirmation from the letting agents that she moved in yesterday. So we are back in mortgage land again. The BTL mortgage is £120,995 on an interest only basis, fixed at 2.19% until 31/08/2019.

    Our plan is to build up an emergency fund for a few months, and then start small overpayments sometime in the New Year. Sadly our mortgage does not allow ad hoc overpayments, but they will allow us to amend the monthly mortgage payment.

    Iím looking forward to seeing how much we can pay off before the fixed rate ends.
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